City Council Minutes, 5-29-01

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, MAY 29, 2001

The Council of the City of San José convened in regular session at 9:30 a.m. in City Council Chambers at City Hall.

Present: Council Members - Campos, Cortese, Dando, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Members - Chavez, Diquisto (both excused).

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (b) to discuss anticipated litigation involving one matter; and pursuant to Subsection (c) in one matter involving the initiation of litigation; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: City Negotiator: City Manager designee Alex Gurza; Employee Organization: Employee Organization: International Association of Firefighters.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:45 a.m. and reconvened at 1:33 p.m. in the Council Chambers.

Present: Council Members - Campos, Chavez, Cortese, Dando, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Members - Diquisto (excused).

Invocation

Ballet Folklorico Dancers from the James Lick High School performed a La Bruja dance from the region of the Yucatan Peninsula. (District 5)

Pledge of Allegiance

Mayor Gonzales led the pledge of allegiance.

Orders of the Day

Upon motion by Council Member Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Item 2.12 was deferred to June 12, 2001, and the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Diquisto.

CEREMONIAL ITEMS

1.1 Presentation of a proclamation declaring June 2, 2001, “YMCA Day.” (LeZotte)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member LeZotte for presentation of a proclamation declaring June 2, 2001 “YMCA Day”; the proclamation was accepted by Mario Vargas, Director of the Southwest YMCA.

1.2 Presentation of plaques to Craig Tanaka for 5 years 11 months service on the Historic Landmarks Commission and to Al Yahanda for 3 years 4 months service on the Senior Citizens Commission. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales commended Craig Tanaka and Al Yahanda for service on the Historic Landmarks Commission and the Senior Citizens Commission; plaques will be sent to both recipients who were unable to be present.

1.3 Presentation of a commendation to Ms. Celeste McInerney for her excellent job performance at the Family Violence Center. (Dando)

(Rules Committee referral 5/23/01)

Documents filed: None.

Discussion/Action: Council Member Dando joined Mayor Gonzales for presentation of a commendation to Celeste McInerney of the Santa Clara County Probation Office for providing cooperative services at the San José Family Violence Center. Ms. McInerney accepted the award and recognized her supervisors from the Santa Clara County Probation Office who were in the audience.

1.4 Presentation of a commendation to The Neighborhood Clean Up Program, for their efforts to improve the quality of life and environment with the help of dedicated volunteers and residents throughout the City of San José. (Campos)

(Orders of the Day)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member Campos for presentation of a commendation to Steve Emslie, Deputy Director, Code Enforcement Division of Department of Planning, Building and Code Enforcement and Lance Uyeda, Code Enforcement Neighborhood Clean Up Program Supervisor. Deputy Director Steve Emslie credited the Concentrated Code Enforcement Staff for the success of the Program and asked Staff in the audience to stand to be recognized.

CONSENT CALENDAR

Upon motion by Council Member Williams, seconded by Council Member Reed, and unanimously carried, the Consent Calendar was approved and the below listed items taken as indicated. Vote: 10-0-1-0. Absent: Diquisto.

2.1 Approval of City Council Minutes for:

(a) Adjourned regular meeting of February 21, 2001 –

Council Referral Prioritization Session #1

(b) Adjourned regular meeting of February 22, 2001 -

Council Referral Prioritization Session #2

(d) Joint City Council/Financing Authority meeting of February 27, 2001.

(e) Joint City Council/Redevelopment Agency meeting of February 27, 2001.

Documents filed: Council Referral Prioritization Minutes of February 21, 22, 2001, and Regular Meeting, Joint Council/Financing Authority and Joint Council/Redevelopment meetings of February 27, 2001.

Discussion/Action: The meetings of February 21, 22 and 27, 2001 were approved. Vote: 10-0-1-0. Absent: Diquisto.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26385 – Amends Sections 14.22.030 and 14.22.080 of Chapter 14.22 of Title 14 of the San José Municipal Code to modify eligibility criteria and repayment requirements of the Deferred Assessment Program.

(b) ORD. NO. 26387 – Amends Part 36 of Chapter 2.08 of Title 2 of the San José Municipal Code to clarify the appointment process for members of the Downtown Parking Board and to allow members to serve second terms.

(c) ORD. NO. 26390 – Rezones certain real property situated at the southwest corner of Interstate 280 and Northrup Street. PDC 00-08-071

(d) ORD. NO. 26391 - Rezones certain real property situated on the northwestern corner of Magliocco Drive and Huff Avenue. PDC 01-01-008

(e) ORD. NO. 26392 - Rezones certain real property situated at the east side of Clemence Avenue approximately 310 feet southerly of Owsley Avenue. PDCSH 01-02-022

(f) ORD. NO. 26393 – Amends Part 5 of Chapter 23.04 of Title 23 of the San José Municipal Code by adding a new Section 23.04.495 to allow agreements for the removal of billboards.

Documents filed: Proofs of Publication of Title of Ordinance Nos. 26385, 26387, 26390, 26391, 26391 and 26393, executed May 22 and 25, 2001, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke in opposition to the proposed ordinances. Ordinance Nos. 26385, 26387, 26390, 26391, 26392 and 26393 were adopted. Vote:

10-0-1-0. Absent: Diquisto.

2.3 Approval of a first amendment to the consultant agreement with Brown Buntin Associates, Inc. for the preparation of Airport Noise Exposure Maps and Reports, increasing compensation by $60,000, from $50,000 to $110,000, and extending the agreement term from June 30, 2001 to June 30, 2002. (Airport)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 9, 2001, recommending approval of a first amendment to said agreement with Brown Buntin Associates, Inc.

Discussion/Action: The amendment to said agreement with Brown Buntin Associates, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.4 Approval of a consultant agreement with Davis Power Consultants, in an amount not to exceed $100,000, for assistance with the development of City Requests for Qualifications for development of power generation facilities on City-owned property and analytical services on energy and environmental issues associated with energy generation facilities, for an agreement term from March 22, 2001 through June 30, 2002. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 9, 2001, recommending approval of said agreement with Davis Power Consultants.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The agreement with Davis Power Consultants was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.5 Adoption of a resolution approving the City of San José participation in a unified statewide DBE certification program, and authorizing the City Manager to execute an agreement and declaration to participate as a certified member in the Unified Certification Program under federal DOT regulations. (Equality Assurance)

Documents filed: Director of Equality Assurance, Nina S. Grayson, dated May 9, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70373, entitled: “A Resolution of the Council of the City of San José Approving City of San José Participation in a Unified Statewide Disadvantaged Business Enterprise (DBE) Certification Program as Required by Federal Regulations”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

2.6 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #45, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 9, 2001, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 45 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: Diquisto.

2.7 Award the sole source purchase of thirty (30) Motorola Astro-Spectra W4 mobile radios and forty-five (45) Motorola XTS3000 portable radios, for the Police Department, to Motorola C & E Inc. at a total cost of $301,098.35, including tax and deliver, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 9, 2001, recommending Council award said purchase to Motorola C & E, Inc., as a sole source purchase in accordance with Subsection 4.12.020D of the Municipal Code and authorize the Director of General Services to execute the purchase order.

Discussion/Action: The award of purchase to Motorola C & E, Inc., and authorization for the Director of General Services to execute the purchase order was approved. Vote: 10-0-1-0. Absent: Diquisto.

2.8 Approval of a continuation agreement with Group 4/Architecture, Research and Planning, Inc., for Phase III of the Branch Facilities Master Plan, to extend the agreement term from December 31, 2000 to June 30, 2001, at no additional cost to the City. (Library)

Documents filed: Memorandum from City Librarian Jane Light, dated May 9, 2001, recommending approval of said continuation agreement with Group 4/Architecture, Research and Planning, Inc.

Discussion/Action: The continuation agreement with Group 4/Architecture, Research and Planning, Inc. for said project was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.9 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Franklin McKinley School District to assist in the construction of a library at Santee Elementary School, in an amount not to exceed $250,000. CEQA: Exempt. Council District 7. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated May 9, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70374, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Franklin McKinley School District to Assist in the Construction of a Library at Santee Elementary School in an Amount Not to Exceed $250,000”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

2.10 Adoption of a resolution authorizing the City Manager to negotiate and execute a grant agreement with the East Side Union High School District for the operation of the District’s swimming pools for the period June 1, 2001 to October 31, 2001, in the amount of $97,000. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated May 9, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70375, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Grant Agreement with the East Side Union High School District for the Operation of the District’s Swimming Pools for the Period June 1, 2001, Through October 31, 2001, in an Amount Not to Exceed $97,000”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

2.11 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with David J. Powers & Associates, Inc. for the preparation of an Environmental Impact Report and/or necessary environmental documents to support Phase II of the Housing Opportunity Study, in the amount of $197,600, for the period May 10, 2001 to January 15, 2002. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 9, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70376, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with David J. Powers & Associates, Inc. for the Preparation of Environmental Documents for Phase II of the Housing Opportunity Study in an Amount Not to Exceed $197,600” adopted. Vote: 10-0-1-0. Absent: Diquisto.

2.12 Adoption of a resolution authorizing the reorganization of territory designated as Lick No. 27, which involves the annexation to the City of San José of 148.8 acres of land, located east of Zanker Road, west of Coyote Creek, north and south of SR-237 and generally bounded by the City of San José Annexation #735 – Lick No. 6, the City of San José Annexation #1960 – Lick No. 17, the City of Milpitas Annexation 1986-Lick No. 2, and the detachment of the same from the appropriate special districts including the Central Fire Protection District, County Library Service Area, and Santa Clara Valley County Water. CEQA: Resolution No. 70259. Council District 4. (Planning, Building and Code Enforcement)

Documents filed: None.

Discussion/Action: This item was deferred to June 12, 2001.

2.13 (a) Adoption of a resolution accepting an award from the Office of National Drug Control Policy for a High Intensity Drug Trafficking Area program in the amount of $52,668.

(b) Approval of an agreement with the California Department of Justice Bureau of Narcotic Enforcement for continuation of the South Bay High Intensity Drug Trafficking Area Task Force for the period January 1, 2001 through December 31, 2001, in the amount of $19,038.

(c) Adoption of related amendments to the appropriation ordinance and funding sources resolution in the General Fund to increase the Police Department’s personal services by $71,706 for expenses related to the award.

(Police/City Manager’s Office)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, and Budget Director Larry D. Lisenbee, dated May 9, 2001, recommending approval of said agreement, acceptance of funds from Office of National Drug Control Policy, and adoption of appropriate ordinance and related revenue resolution amendments.

Discussion/Action: The agreement with the California Department of Justice Bureau of Narcotic Enforcement for continuation of the South Bay High Intensity Drug Trafficking Area Task Force for said period and amount was approved, and Resolution No. 70377, entitled: “A Resolution of the Council of the City of San José Accepting an Award in the Amount of $52,668 from the Office of National Drug Control Policy for a High Intensity Drug Trafficking Area Program, and to Execute All Related Documents’; Ordinance No. 26397, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the General Fund in the Amount of $71,706 for the High Intensity Drug Trafficking Area Program and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 70378 entitled, “A Resolution of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the Services for Redevelopment Capital Project Fund”, were adopted. Vote: 10-0-1-0. Absent: Diquisto.

2.14 Approval of an agreement for consultant services with The Planning Collaborative, Inc. for the San Tomas Aquino/Saratoga Creek Trail Reach 6 feasibility study and design development for a base fee amount of $249,500, from the date of execution to December 31, 2002. Council District 1. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 9, 2001, recommending approval of said agreement with The Planning Collaborative, Inc.

Discussion/Action: The agreement with The Planning Collaborative, Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.15 Approval of a five-year property use agreement, with one five-year option, with Mobilestar Network Corporation, allowing for the construction, installation, maintenance, and operation of a telecommunications facility at 1661 and 2077 Airport Boulevard, at an annual rent of $60,000 plus $55 per square foot per annum floor space or shelf space, with yearly increases in both at the greater of 4% or the rise in the Consumer Price Index. (Public Works/Airport)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, and Aviation Director, Ralph G. Tonseth, dated May 9, 2001, recommending approval of said agreement, with said option, with Mobilestar Network Corporation.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The five-year property use agreement, with one five-year option, with Mobilestar Network Corporation, was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.16 Report on bids and award of contract for the Convention Center Expansion Joint Replacement Project to the sole bidder, Performance Contracting, Inc. for $138,090 and approval of a contingency in the amount of $20,000. CEQA: Exempt. Council District 3. (Public Works)

Documents filed: Memoranda from Acting Director of Public Works, Rajeev Batra, dated May 9 and 22, 2001, recommending award of said contract to the sole bidder, Performance Contracting, Inc., and approval of said contingency.

Discussion/Action: The award of said contract to Performance Contracting, Inc. and related contingency, were approved and their execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.17 Approval of one proposed City Event, as provided in the San José Management Agreement, for use at the San José Arena on August 17, 2001 for the 2001 Police and Fire Summer Games, Boxing Finals, and the Police Officer & Fire Fighter Memorial Service. (San José Arena Authority)

Documents filed: Memorandum from San José Arena Authority, dated May 9, 2001, recommending approval of one proposed City Event at the San José Arena on August 17, 2001.

Discussion/Action: The 2001 Police and Fire Summer Games, Boxing Finals, and the Police Officer & Fire Fighter Memorial Service was approved as a City Event at the San José Arena on August 17, 2001. Vote: 10-0-1-0. Absent: Diquisto.

2.19 Approval of a five-year property use agreement, with one five-year option, with Sprint PCS, allowing for the construction, installation, maintenance, and operation of telecommunications facilities at 1661 and 2077 Airport Boulevard, at an annual base rent of $60,000 plus $55 per square foot per year for floor and shelf space, with yearly increases in base and square foot charges at the greater of 4% or the rise in the Consumer Price Index. CEQA: Exempt. Council District 3. (Public Works)

(Deferred from 5/8/01 – Item 2.14 et al., and 5/22/01 – Item 2.11)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 18, 2001, recommending approval of a five-year property use agreement, with one five-year option, with Sprint PCS.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The five-year property use agreement, with one-five-year option, with Sprint PCS, was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diquisto.

2.20 Approval of appointment of Council Member Cortese to serve as the liaison to the Santa Clara County Cities Association. (Mayor)

(Rules Committee referral 5/23/01)

Documents filed: Memorandum from Mayor Gonzales, dated May 25, 2001, recommending the appointment of Council Member Cortese to serve as liaison to the Santa Clara County Cities Association.

Discussion/Action: The appointment of Council Member Cortese was approved. Vote: 10-0-1-0. Absent: Diquisto.

2.21 Approval of an ordinance amending Chapter 4.04 of Title 4 of the San José Municipal Code by adding a new Section 4.04.055 to authorize the City Manager, City Attorney, City Auditor, and City Clerk to approve minor amendments to contracts previously approved by the City Council which involve no increase in compensation: to extend the term up to 6 consecutive months, to make minor revisions to scopes of services and to make clerical corrections; and to approve assignments of contracts. (City Attorney’s Office)

(Rules Committee referral 5/23/01)

Documents filed: Memorandum from City Attorney Richard Doyle, dated May 25, 2001, recommending approval of said amendment to the San José Municipal Code.

Discussion/Action: William J. Garbett spoke in opposition. Ordinance No. 26398, entitled: “An Ordinance of the City of San José Amending Chapter 4.04 of Title 4 of the San José Municipal Code by Adding a New Section 4.04.055 to Authorize the City Manager, City Attorney, City Clerk and City Auditor to Approve Minor Amendments to Contracts which Involve No Increase in Compensation; to Extend the Term up to 6 Consecutive Months, to make Minor Revisions to Scopes of Services and to Make Clerical Corrections; and to Approve Assignments of Contracts”, was passed for public-cation. Vote: 10-0-1-0. Absent: Diquisto.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – May 16, 2001

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of May 16, 2001.

(a) Redevelopment Agency items reported out at Redevelopment Agency meeting

(b) City Council

(1) Review May 29, 2001 Draft Agenda

The Committee approved the May 29, 2001 City Council agenda.

(2) Add New Items to May 22, 2001 Amended Agenda

The Committee recommended four additions to the May 22, 2001 City Council agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

(d) Ad Hoc Traffic Calming Advisory Committee

None filed.

(d) Meeting Schedules. Attachment: Memorandum from Mayor Gonzales and Vice Mayor Shirakawa, Jr., dated May 16, 2001, requesting that a Budget Public Hearing be rescheduled.

The Committee recommended rescheduling the Public Hearing to discuss the Fees and Charges Budget from Monday, May 21, to Tuesday, May 22, 2001 at 7:00 p.m.

(e) The Public Record – May 2 to May 8, 2001. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated May 10, 2001, listing the items transmitted to the Administration and those items filed for the Public Record for the period May 2-8, 2001.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

(1) Appoint two community representatives to the Airport Noise Monitoring Committee. (1) Memorandum from City Clerk, Patricia L. O’Hearn, dated April 27, 2001, recommending Rules Committee appoint two community representatives from among the five applications received; (2) Memorandum from City Attorney Richard Doyle, dated April 25, 2001, reviewing the applicants for conflict of interest; (3) Memorandum from Council Member Reed, dated May 10, 2001, recommending Marianne Gardner for appointment to the Airport Noise Monitoring Committee; and (4) Memorandum from Council Member Yeager, dated May 16, 2001, recommending Russ McBrien and Kathy Marshal for appointment to the Airport Noise Monitoring Committee.

The Committee recommended appointment of Russ McBrien and Cathy Marshall as community representatives to the Airport Noise Monitoring Committee.

(2) Recommend 15 community organizations to be appointed to the Project Area Committee for the proposed Strong Neighborhood Initiative (SNI) Redevelopment Project Area. Attachment: (1) Memorandum from Vice Mayor Shirakawa, Jr., dated May 8, 2001, listing the results of the Project Area Committee election by Council District; (2) Memorandum from Nancy Lytle, Project Coordinate for the Redevelopment Agency’s SNI process, listing the PAC election winners.

The Committee recommended approval of Vice Mayor Shirakawa, Jr.’s plan and directed Districts 1, 5, 6, 7, 8, 9, 10 and the Mayor’s Office to submit their nominations to the City Clerk’s Office by Monday, May 21, 2001, at 5:00 p.m.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee - None filed.

(h) Administrative Reviews and Approval

(1) Request to use Council General Funds by Council Member Dando to attend the National League of Cities TEA-21 Task Force Meeting and TIS Spring Meeting, June 13-17, 2001, in Hoffman Estates, Illinois. Attach-ment: (1) Memorandum and travel request from Council Member Dando, dated May 2, 2001, requesting authorization for use of Council General Funds. (2) Memorandum from City Clerk, Patricia L. O’Hearn, dated May 9, 2001, summarizing use of Council General Travel Budget to date.

The Committee recommended approval for use of Council General funds by Council Member Dando to attend the National League of Cities Transportation Equity Act of the 21^st Century Task Force Meeting and Transportation and Infrastructure Services Spring Meeting from June 13-17, 2001 in Hoffman Estates, Illinois.

(i) Oral communications - None presented.

(j) Adjournment - The meeting was adjourned at 2:45 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of May 16, 2001, were accepted. Vote: 10-0-1-0. Absent: Diquisto.

3.4 Approval to waive the Revolving Door Ordinance to allow former Council Member Charlotte Powers to contract with the City of San José to provide assistance with neighborhood outreach and related issues for the San José International Airport. (Airport)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 24, 2001, recommending approval to waive the Revolving Door Ordinance to allow former Council Member Charlotte Powers to contract with the City of San José for said services.

Discussion/Action: Council Member Williams moved approval. Vice Mayor Shirakawa, Jr. seconded the motion. Council Member Yeager expressed concerns about making exceptions to the City’s Revolving Door Policy, even though he has no concerns about the individual being considered for exemption. Council Member Cortese stated he shares those concerns and, although supportive of greater community outreach, he would prefer review of the policy to consider a permanent exemption for community outreach rather than make exemptions for individuals on a case-by-case basis. City Attorney Richard Doyle stated it would be up to the Council whether to make a permanent exemption or continue on a case-by-case basis. Mayor Gonzales stated the key part of the ordinance is to restrict lobbying of the City by a former City official and that portion is not part of the exemption. Mayor Gonzales suggested sending review of the policy to Staff as part of the Referral Prioritization Process. William J. Garbett spoke in opposition to the proposal. Upon a call for the question, the motion carried, the Revolving Door Ordinance waiver was approved, and the issue of a permanent exemption in the Revolving Door Ordinance for the conduction of community outreach was referred Staff as part of the Council Referral Prioritization process. Vote: 9-1-1-0. Noes: Yeager. Absent: Diquisto.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Approval of an ordinance amending the City of San José Municipal Code Sections 4.46.039.5, 4.47.092, 4.54.038, and 4.64.035 of Title 4 to extend through June 30, 2006, the suspension granted to newly-constructed very low-income (includes extremely low-income households) housing from the following taxes:

(a) City’s Building and Structure Construction Tax;

(b) Construction Portion of the Construction and Conveyance Tax;

(d) Residential Construction Tax.

(Housing)

Documents filed: Memorandum from Acting Director of Housing, Leslye Corsiglia, dated May 9, 2001, recommending approval of said amendment to the San José Municipal Code.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, Ordinance No. 26399, entitled: “An Ordinance of the City of San José Amending Section 4.46.039.5 of Chapter 4.46, Section 4.47.092 of Chapter 4.47, Section 4.54.038 of Chapter 4.54, and Section 4.64.035 of Chapter 4.64 of Title 4 of the San José Municipal Code, to Extend the Suspension of Collection of Taxes Imposed under Such Chapters for New Construction of Housing for Very Low Income Households to June 30, 2006”, was passed for publication. Vote: 10-0-1-0. Absent: Diquisto.

4.3 Adoption of a resolution:

(a) Approving fund reservations for a loan of up to $6,100,000 and a grant of up to $1,500,000 to Roberts Avenue, Inc., for the 100-unit Roberts Avenue Senior Housing Development, affordable to very low-income seniors, located at the northeast corner of Roberts Avenue and Vintage Way.

(b) Authorizing the Director of Housing or her designee to negotiate and execute an option agreement for the purchase of property by Roberts Avenue, Inc., or its designated affiliate from the City of San José.

(c) Authorizing the Director of Housing to apply, on behalf of the City, as co-sponsor of the project in the application to CHFA for CDLAC allocation, if appropriate.

(d) Approving an increase in the Predevelopment Loan for a total amount of $625,000.

Council District 7. (Housing)

Documents filed: Memorandum from Acting Director of Housing, Leslye Corsiglia, dated May 9, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams, and unanimously carried, Resolution No. 70379, entitled: “A Resolution of the Council of the City of San José (1) Approving Fund Reservation for a Loan of $6,100,000 and a Grant of up to $1,500,000 to Roberts Avenue, Inc.. for the Roberts Avenue Senior Housing Development; (2) Authorizing the Director of Housing to Negotiate and Execute an Option Agreement for the Purchase of Property by Roberts Avenue, Inc. for its Designated Affiliate from the City of San José; (3) Approving an Increase in the Predevelopment Loan for a Total Amount of up to $625,000; (4) Authorizing the Director of Housing to Apply on Behalf of the City as a Co-Sponsor of the Roberts Avenue Senior Housing Development, in the Application to CHFA for CDLAC Allocation, if Appropriate; and (5) Authorizing the Director of Housing to Negotiate and Execute Documents Necessary to Complete These Transactions”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

4.4 (a) Report on bids and award of contract for the Street Lights Monterey Pedestrian Project to the lowest responsive bidder, Tennyson Electric, Inc., in the amount of $546,423, and approval of contingency in the amount of $33,000. CEQA: Exempt. (Public Works)

(b) Adoption of appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund) for the Monterey Pedestrian Street Lights Project with a net impact to the fund of $628,000. (City Manager’s Office)

(Deferred from 5/22/01 – Item 4.2)

Documents filed: (1) Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 23, 2001, recommending award of said contract to the lowest responsive bidder, Tennyson Electric, Inc., and approval of said contingency. (2) Memorandum from Budget Director Larry D. Lisenbee, dated May 23, 2001, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and carried, the award of contract to the lowest responsive bidder, Tennyson Electric, Inc., with related contingency, was approved; Ordinance No. 26400, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the Services for Redevelopment Capital Projects Fund in the Amount of $628,000 for the Monterey Pedestrian Street Lights Project: and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 70380, entitled, “A Resolution of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the General Fund”, were adopted. Vote: 9-1-1-0. Noes: LeZotte. Absent: Diquisto.

4.5 Adoption of a resolution approving a fund reservation of up to $3,757,000 to Simpson Housing Solutions L.L.C., or its designated partnership, for the development of the 66-unit Almaden Senior Apartments Project with units affordable to low- and very low-income households on a 1.3-acre site located on the west side of Almaden Road, approximately 100 feet southerly of Willow Glen Way. CEQA: ND. Council District 6. (Housing)

(Rules Committee referral 5/23/01)

Documents filed: Memorandum from Acting Director of Housing, Leslye Corsiglia, dated May 22, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Williams, and unanimously carried, Resolution No. 70381, entitled: “A Resolu-ion of the Council of the City of San José (i) Approving a Fund Reservation of up to $3,757,000 for Simpson Housing Solutions, L.L.C., or its Designated Partnership for the Development of the 66-Unit Almaden Senior Projects, Affordable to Low and Very Low Income Households and; (ii) Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents Evidencing Such Loans on Behalf of the City”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

RECREATION & CULTURAL SERVICES

5.2 (a) Adoption of the following appropriation ordinance amendments in the General Fund:

(1) Increase the Tuers-Capitol Golf Course project appropriation by $2,967,000.

(2) Reduce the Future Capital Projects Reserve by $2,967,000.

(b) Approval of an increase in the construction project contingency by $675,000, from $875,000 to $1,550,000.

(c) Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the Grow-in Agreement with San José Golf, LLC, a California limited liability company, modifying the term of grow-in of the Tuers-Capitol Golf Course to commence on May 1, 2001, extending the agreement term for an additional eight (8) months to terminate on March 1, 2002, increasing total compensation in an amount not to exceed $2,513,000.

(d) Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the Operations and Maintenance Agreement with San José Golf, LLC regarding Rancho del Pueblo Golf Course to allow the Class A Golf Course Superintendent for the Tuers-Capitol Golf Course to also oversee maintenance of Rancho del Pueblo plus other related changes.

(Conventions, Arts and Entertainment)

(Rules Committee referral 5/23/01)

Documents filed: None.

Discussion/Action: This item was deferred to June 5, 2001.

ENVIRONMENTAL & UTILITY SERVICES

7.1 PUBLIC HEARING on approval of an ordinance granting a Commercial Solid Waste and Recyclables Collection Franchise and approval of a Commercial Solid Waste and Recyclables Collection Franchise Agreement with Smurfit-Stone Container Corporation dba Smurfit-Stone Recycling. (Environmental Services)

[Deferred from 5/8/01 – Item 7.1(v)]

Documents filed: None.

Discussion/Action: This item was deferred to June 5, 2001.

AVIATION SERVICES

Item 8.1 and 8.2 were heard together.

8.1 Adoption of a resolution authorizing the City Manager to negotiate and execute an Airline Operating Agreement and License with Air Canada for the period July 1, 2001 through November 30, 2007, with projected annual revenue to the City of $240,000. CEQA: Resolution No. 67380. (Airport)

(Deferred from 5/22/01 – Item 8.1)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 2, 2001, recommending the City Manager be authorized to negotiate and execute said Operating Agreement and License with Air Canada.

8.2 Approval of the sixth amendment to Operating Agreement and Terminal Building Lease with Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana Airlines) extending the term from February 1, 2002 through November 30, 2007, and adding approximately 201 square feet of operations space, with projected annual revenue to the City of $242,000. CEQA: Resolution No. 67380. (Airport)

(Deferred from 5/8/01 – Item 2.3 and 5/22/01 – Item 2.2)

Documents filed: (1) Supplemental memorandum, dated May 24, 2001, providing information on curfew compliance by Air Canada and Mexicana Airlines. (2) from Director of Aviation, Ralph G. Tonseth, dated April 18, 2001, recommending approval of the sixth amendment to Operating Agreement and Terminal Building Lease with Compania Mexicana de Aviacion, S.A. de C.V.

Discussion/Action: Council Member Williams moved approval of Item 8.1. Council Member LeZotte seconded the motion. Council Member Yeager requested Items 8.1 and 8.2 be heard together. He questioned approving the lease agreements when the two airlines have not signed the Supplemental Cooperation Agreement expressing intent to comply with the City’s curfew ordinance, especially since both contracts go well into the future. Aviation Director Tonseth stated Air Canada has not had violations, and although Mexicana Airlines has had curfew violations, they have indicated they will sign the Compliance Agreement. Mexicana has taken steps to improve compliance by moving the flight in question, Flight No. 955, out of San José to Oakland, and at Staff’s request, changed aircraft from an older Boeing to quieter Airbus equipment. City Attorney Doyle advised that all airlines are required under their lease agreement to comply with all terms, conditions, rules and regulations of the Airport which include San José’s curfew ordinance. He stated the voluntary Supplemental Compliance Agreement reinforces the airlines’ commitment to compliance and is not requested from all carriers, only those who have compliance problems. Council Member Yeager stated that the City has the greatest leverage to obtain voluntary consent from the airlines before the lease agreement is approved; therefore, he requested both contracts be deferred until such time that the Supplementary Compliance Agreements pertaining to the curfew are signed. Council Member LeZotte seconded the motion. In response to questions posed by Council Member Chavez about the City’s options to address noncom-pliance, City Attorney Doyle stated because the City’s curfew law is “grandfathered” under Federal law, there are restrictions on penalties which can be imposed, that the current program cannot be modified, and the City is pre-empted with respect to requiring the voluntary agreements on a blanket basis as opposed to a case-by-case basis. He recommended the City Attorney’s Office provide Council with historical background on the previous actions taken by the City and the available options to address this issue. Council Member Williams withdrew his motion to approve the Staff recommendations and Vice Mayor Shirakawa, Jr., withdrew his second. Upon motion by Council Member Yeager, seconded by Council Member LeZotte, and unanimously carried, Items 8.1 and 8.2 were deferred to August, 2001, the date to be determined pending the signing by Air Canada and by Mexicana Airlines of the City’s Supplemental Cooperation Agreement pertaining to adherence to the City’s curfew regulations, and the City Attorney’s Office to report back to Council on enforcement options for curfew violations. Vote: 10-0-1-0. Absent: Diquisto.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Council convened the Redevelopment Agency Board at 2:32 p.m. to consider Item 10.1 in a joint session.

10.1 (a) Adoption of a resolution by the City Council approving an Exchange Agreement between Provident Development, LLC. (Developer) and the City of San José to exchange real property to be owned by the Developer for real property owned by the City of San José in Edenvale; and,

(b) Adoption of a resolution by the Agency Board to pay the Developer the difference in value of the land in an amount equal to $254,000.

CEQA: Resolution No. 69699.

(Redevelopment Agency/City Manager's Office)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf and Redevelopment Executive Director Susan F. Shick, dated May 23, 2001, recommending approval of said resolutions.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Cortese, and unanimously carried, Resolution No. 70382, entitled: “A Resolution of the Council of the City of San José Approving an Exchange Agreement Between Provident Development LLC and the City of San José to Exchange Real Property to be Owned by the Developer for Real Property Owned by the City of San José in Edenvale”, and Redevelopment Agency Resolution No. 5167 were adopted. Vote: 10-0-1-0. Absent: Diquisto.

The Redevelopment Agency Board portion of the meeting was adjourned at 2:33 p.m.

Open Forum

William J. Garbett spoke about the Neighborhood Clean-up program.

Adjournment

The Council of the City of San José adjourned at 2:37 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK